Most countries are served by competing trade routes. Corridor users therefore often have a choice of corridor. In South Africa, the main citrus-growing area is 480 kilometers closer to Maputo, in Mozambique, than it is to the domestic port of Durban. Despite this advantage, only 8 percent of citrus exports are shipped on the Maputo Corridor; the rest are shipped via domestic routes to Durban.
Two main problems explain this pattern. First, delays at the border post between South Africa and Mozambique negate the lower transport costs by road. Second, and more important, Maputo has fewer shipping lines servicing the port. The Port of Durban, the largest and busiest port on the continent, has shipping access to all key citrus markets. Currently, the only markets serviced from Maputo on a dedicated shipping sched- ule are Europe and the Mediterranean markets. In order to increase the throughput of Maputo, shipping access to other key markets, such as the Russian Federation and the Middle East, need to be serviced on a dedicated schedule.
This example illustrates two important issues, which influenced the design and content of this Toolkit. First, corridor design has to explicitly reflect the behavior of likely users. With competing trade routes, the decisions of shippers and their ability to reorganize their supply chains will influence the magnitude of the impact of corridor interventions. Second, maritime shipping services affect overland traffic assignment across a corridor network.
Primer 25 coalitions is therefore probably more important than geography in improv-
ing a trade and transport corridor.
The soft aspects of corridor projects may not cost a lot of money, but they can be the most important. Financing of components related to trade facili- tation in a corridor project represents about 10 percent of the total for trade and transport corridor projects financed by the World Bank. Both the East Africa Trade and Transport Facilitation Project and the Southern Africa Trade and Transport Facilitation Project have separate components on trade facilitation. Another measure that can reduce costs but is not costly to imple- ment is the monitoring of corrupt and other informal practices, which can be prevalent on some corridors, affecting cost, time, and reliability. Corrupt practices are most visible at border-crossing points and checkpoints en route. The checkpoints are typically mounted by the uniformed officials from security or regulatory agencies, including customs. However, often it is not easy to obtain data on who is responsible or how much it costs (in money and time) to obtain clearance to proceed.
Note
1. For example, providing faster and more reliable turnaround for international conveyance will stimulate growth in trade and attract larger, more efficient conveyances.
References
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26 Trade and Transport Corridor Management Toolkit Hall, P. 2007. “Global Logistics and Local Dilemmas.” Paper presented at the
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Resources
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Darren, F., and T. Notteboom. 2012. “Corridor Strategies: The Integration of the Southern African Container Port Hubs and Intermediate Hubs with Port Hinterlands.” Paper presented at the Asian Logistics Roundtable and Conference, Vancouver, June 14–15.
Primer 27
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